Jindal Steel and Power Ltd to increase stake in Australia's Apollo Minerals

SummaryJindal Steel and Power Ltd will increase stake in Australia's Apollo Minerals to 11.70 per cent.

Jindal Steel and Power Ltd (JSPL) will increase stake in Australia's Apollo Minerals to 11.70 per cent by acquiring an additional 10 million shares of the firm for about AUD 0.4 million (about Rs 2.20 crore).

Prior to this, JSPL had 9.25 per cent in the Australian company, which is primarily into iron ore mining.

Apollo Minerals said in a statement that "it has signed a share subscription agreement with one of the Company¿s major shareholders, Jindal Steel and Power Australia Pty Ltd (a subsidiary of JSPL)".

"Under the terms of the subscription Agreement, JSPL will subscribe for 10,000,000 ordinary shares at AUD 0.04 per share for gross proceeds to the company of AUD 400,000. This investment will result in JSPL owning 11.7 per cent of the total issued shares in Apollo," it added.

Apollo further said the deal will be completed this week and is not subject to regulatory approvals from any Australian or state government agency.

Prior to acquiring 9.25 per cent stake in Apollo Minerals, the Naveen Jindal-led firm's presence in Australia was limited to the coal sector with six exploration permits in Queensland and 27.27 per cent stake in Rockland Richfield and over 19 per cent stake in Gujarat NRE Coking Coal.

Apollo Minerals has Commonwealth Hill project in South Australia and Mount Oscar Project in the Pilbara region of Western Australia.

The company expects to use the proceeds, raised from JSPL, in exploration and development of Commonwealth Hill Iron Project and Titan Base-Precious Metals Project, both situated in the highly prospective Gawler Craton in South Australia, and working capital purposes.

JSPL scrip was trading at Rs 353.25 on the BSE at 1220 hrs, down 0.11 per cent from the previous close.